Stifel Nicolaus reduced its rating on ADTRAN (NASDAQ: ADTN) from Buy to Hold and suspended its $35 price target.

Stifel Nicolaus noted, "Typically when there is a slowdown with one major customer (AT&T in this case), the company sees other customers (multiple tier 2 customers for example) pick up the slack. Unfortunately, the company is seeing a slowdown in capex by multiple service providers, who are becoming increasingly concerned about the macro environment. Increasingly, we also believe that ADTRAN does not seem to have the right exposure as it relates to projects that are being prioritized by carriers (especially AT&T and Verizon, where spending is very heavily skewed toward wireless).